Futures history can be traced back to middle ages where markets were meant to address the needs of the farmers and the merchants. The Chicago Board of Trade (CBOT) was established in 1848 to bring farmers and merchants together. Initially, its main task was to standardize the quantities and qualities of the grains that were traded. The first futures type contract developed was called "to-arrive contract". The CBOT now offers futures contracts on many different underlying assets in commodities and financial markets.

Many other exchanges in the world now offer futures contracts. Eurex, the German-Swiss derivatives exchange, was the world’s biggest financial futures exchange at the end of 1999, overtaking the Chicago Board of Trade for the first time after a huge increase in contracts traded in 1999. Eurex traded more than 379 million contracts during 1999, 53% more than in 1998. This is expected to be well above the comparable figure for the CBOT, where officials are expecting a fall of about 10% from the 1998 total, when a record 281.2 million contracts were traded.

LIFFE, the London market, is also expecting a sharp fall in volumes to some 120 million contracts, compared with 194 million in 1998. MATIF, the French derivatives market traded 183 million contracts in 1999, more than double its 1998 total. LIFFE lost its European lead when trading in the futures contracts on 10 year German government bonds (bunds) migrated to the electronic Eurex system two years ago.Like the CBOT, trading volumes are also likely to be lower at the Chicago Mercantile Exchange, the second biggest US futures market.

www.cme.com

Futures and Options on currencies, interest rates, stock indexes and agricultural commodities are traded on CME. The International Monetary Market (IMM) was formed in 1972 and became a division of IMM in 1976. It began trading 7 foreign currencies in 1972, which were the first financial futures contracts ever to be traded.

The Index and Options Market (IOM) was formed in 1982 and started trading a stock index future on the S&P500 Stock price Index. An option on this contract began trading in 1983.

• S&P 500 Stock Price Index Futures – Based on S&P 500 Stock Price Index, USD 250 Contract Multiplier, for March, June, September and December.

• S&P 500 /BARRA Growth Index Futures – Based on S&P 500 / BARRA Growth Index, USD 250 Contract Multiplier, for March, June, September and December.

• S&P 500 /BARRA Value Index Futures – Based on S&P 500 / BARRA Value Index, USD 250 Contract Multiplier, for March, June, September and December.

• S&P Midcap 500 Stock Price Index Futures – Based on S&P Midcap 400 Index, USD 250 Contract Multiplier, for March, June, September and December.

• E-Mini S&P 500 Stock Index Futures – Based on S&P 500 Stock Price Index, USD 50 Contract Multiplier, for nearest two months of March, June, September and December.

• Major Market Index Futures – Based on Major Market Index, USD 500 Contract Multiplier, for 3 near months and next 3 months of March, June, September and December.

• Nikkei 225 Stock Average Futures - Based on Nikkei 225 Stock Average, USD 5 Contract Multiplier, for March, June, September and December.

• Russel 2000 Stock Price Index Futures - Based on Russel 2000 Stock Price Index, USD 500 Contract Multiplier, for March, June, September and December.

• FTSE 100 Share Index Futures - Based on FTSE 100 Share Index, USD 50 Contract Multiplier, for March, June, September and December.

• NASDAQ 100 Index Futures - Based on NASDAQ 100 Index, USD 100 Contract Multiplier, for March, June, September and December.

• IPC Stock Index Futures - Based on IPC Index, USD 25 Contract Multiplier, for March, June, September and December.

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Eurex

www.eurexchange.com

Eurex is owned jointly by Deutsche Borse AG and The Swiss Exchange, each of which hold 50% stake in the company. It was formed by merger of German Deutsche Terminborse (DTB) and Switzerland’s SOFFEX. It has a fully electronic trading platform.

Dow Jones STOXX 50 Futures – Based on STOXX 50 index, Euro 10 Multiplier, For Three nearest months within the cycle March, June, September and December.

Dow Jones Euro STOXX 50 Futures – Based on the Dow Jones Euro STOXX 50 index, Euro 10 multiplier, for three nearest months within the cycle March, June, September, December.

DAX Futures (Round Lot) – Based on The Deutscher Aktiendex (DAX), Euro 10 per DAX index point multiplier, for three nearest months of the cycle March, June, September and December.

DAX Futures (Odd Lot) – Based on The Deutscher Aktieindex (DAX), Eur 1.13 per DAX index point contract multiplier, for 3 nearest months of the cycle March, June, September and December.

MDAX Futures (Round Lot) – Based on the Midcap DAX (MDAX), Eur 5 per MDAX index point multiplier, for 3 nearest months of the cycle March, June, September and December.

MDAX Futures (Odd Lot) – Based on the Midcap DAX (MDAX), EUR 0.11 per MDAX index point multiplier, for 3 nearest months of the cycle March, June, September and December.

SMI Futures – Based on the Swiss Market Index (SMI), EUR 0.11 per SMI index point multiplier, for 3 nearest months of the cycle March, June, September and December.

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Hongkong Futures Exchange

www.hkfe.com

The Exchange operates futures and options markets on a broad range of products including equity index, stock, interest rate and foreign exchange products. These products are traded either on the Exchange's trading floor via open outcry or electronically on its Hong Kong Futures Automated Trading System (HKATS). The Exchange, has as its subsidiary. the HKFE Clearing Corporation Ltd. (HKCC).

Hang Seng Index Futures – Based on Hang Seng Index, HKD 50 contract multiplier, for current and next calendar month plus the next two months from the quarterly cycle March, June, September and December.

Hang Seng 100 Futures - Based on Hang Seng 100, HKD 1000 contract multiplier, for spot and next calendar month plus the next two months from the quarterly cycle March, June, September and December.

Red-Chip Index Futures – Based on Hang Seng China Affiliated Corporations Index, HKD 50 contract multiplier, for spot and next calendar month plus the next two months from the quarterly cycle March, June, September and December.

HKFE Taiwan Index Futures - Based on HKFE Taiwan Index, HKD 10 contract multiplier, for spot and next calendar month plus the next two months from the quarterly cycle March, June, September and December.

Stock Futures – On specified stocks with different contract prices, for spot and next calendar month plus the next two months from the quarterly cycle March, June, September and December.

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The London International Financial Futures and Options Exchange (LIFFE)

www.liffe.com

LIFFE offers the most extensive range of derivative products of any exchange in the world – providing futures and options contracts across six different currencies and across four product lines – bonds, short term interest rates, equity indices & individual stocks and commodities. The London Clearing House (LCH) acts as central counterparty to all transactions on LIFFE, and offers the world’s most diverse range of margin offsets.

FTSE Eurotop 100 Index Futures – Based on FTSE Eurotop 100 Index, EUR 20 per point index multiplier, for March, June, September and December (nearest three available for trading).

FTSE Eurobloc 100 Index Futures - Based on FTSE Eurobloc 100 Index, EUR 20 per point index multiplier, for March, June, September and December (nearest three available for trading).

FTSE Eurobloc 300 Index Futures - Based on FTSE Eurobloc 300 Index, EUR 20 per point index multiplier, for March, June, September and December (nearest three available for trading).

FTSE Eurotop 100 ex UK Index Futures - Based on FTSE Eurobloc 300 Index, EUR 20 per point index multiplier, for March, June, September and December (nearest three available for trading).

FTSE 100 Index Futures - Based on FTSE 100 Index, GBP 10 per point index multiplier, for March, June, September and December (nearest three available for trading).

FTSE Mid 250 Index Futures - Based on FTSE Mid 250 Index, GBP 10 per point index multiplier, for March, June, September and December (nearest two available for trading).

MSCI Euro Index Futures - Based on MSCI Euro Index, Euro 20 per point index multiplier, for March, June, September and December (nearest three available for trading).

MSCI Pan-Euro Index Futures - Based on MSCI Pan-Euro Index, Euro 20 per point index multiplier, for March, June, September and December (nearest three available for trading).

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Singapore Exchange

www.simex.com

Singapore exchange is the first demutualised integrated securities and derivatives exchange in Asia Pacific. Inaugurated on 1^st December 1999, It operates through several subsidiaries.

Singapore Exchange Derivatives Trading Ltd. (formerly known as SIMEX)

Singapore Exchange Derivatives Clearing Ltd.

Singapore Exchange Securities Trading Ltd. (formerly known as SES)

Singapore Exchange IT solutions Pte Ltd.

The Central Depository (Pte) Ltd.

Nikkei 225 Stock Average Futures – Based on Nikkei 225 Stock Average Index, JPY 500 contract multiplier, for March, June, September and December listed on 5 quarterly month cycle.

Nikkei 300 Futures - Based on Nikkei 300 Index, JPY 10,000 contract multiplier, for March, June, September and December listed on 5 quarterly month cycle.

SIMEX MSCI Hong Kong + Stock Index Futures - Based on MSCI Hong Kong + Stock Index, USD 5 contract multiplier, for 2 serial months and March, June, September and December listed on 4 quarterly month cycle.

SIMEX MSCI Taiwan Stock Index Futures - Based on MSCI Taiwan Stock Index, USD 100 contract multiplier, for 2 serial months and March, June, September and December.

SIMEX MSCI Singapore Stock Index Futures - Based on MSCI Singapore Free (SiMSCI) Stock Index, SGD 200 contract multiplier, for 2 serial months and March, June, September and December.

SIMEX Dow Jones Thailand Stock Index Futures - Based on Dow Jones Thailand Stock Index, USD 300 contract multiplier, for 2 serial months and March, June, September and December.

SIMEX Dow Jones Malaysia Stock Index Futures - Based on Dow Jones Malaysia Stock Index, USD 200 contract multiplier, for 2 serial months and March, June, September and December.

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Sydney Futures Exchange

www.sfe.com.au

The Sydney Futures Exchange (SEF) was established in 1960 for providing hedging facility for Merino Wool. SFE owns and operates the New Zealand Futures and Options Exchange (NZFOE) and clears and settles all SFE and NZFOE business through its wholly owned subsidiary, Sydney Futures Exchange Clearing House. SEF also has futures on individual stocks.

All Ordinaries Share Price Index Futures – Based on All Ordinaries Share Price Index, AUD 25 contract multiplier, for March June, September and December upto 6 quarters ahead.

Broken Hill Proprietary (BHP) Share Futures – Based on 1000 BHP shares for March June, September and December upto 4 quarters ahead, settled by physical delivery.

News Corporation (NCP) Share Futures – Based on 1000 NCP shares, for February, May, August and November upto 4 quarters ahead, settled by physical delivery.

National Australian Bank (NAB) Share Future – Based on 1000 NAB shares, for January, April, July and October upto 4 quarters ahead, settled by physical delivery.

MIM Holdings (MIM) Share Futures – Based on 1000 MIM shares, for January, April, July and October upto 4 quarters ahead, settled by physical delivery.

Western Mining Corporation (WMC) Share Futures - Based on 1000 WMC shares, for March June, September and December upto 4 quarters ahead, settled by physical delivery.

Pacific Dunlop (PDP) Share Futures - Based on 1000 PDP shares, for February, May, August and November upto 4 quarters ahead, settled by physical delivery.

Westpac Banking Corporation (WBC) Share Futures - Based on 1000 WBC shares, for January, April, July and October upto 4 quarters ahead, settled by physical delivery.

ANZ Bank (ANZ) Share Futures - Based on 1000 ANZ shares, for January, April, July and October upto 4 quarters ahead, settled by physical delivery.

Rio Tinto Limited (RIO) Share Futures - Based on 1000 RIO shares, for March June, September and December upto 4 quarters ahead, settled by physical delivery.

Telstra (TLS) Share Futures – Based on 1000 TLS shares, monthly upto 12 months ahead.

Fosters Brewing (FBG) Shares Futures - Based on 1000 FBG shares, for January, April, July and October upto 4 quarters ahead, settled by physical delivery.

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Other Financial Derivative Exchanges in the World

• AEX-Options Exchange (Netherlands) – www.aex-optiebeurs.nl

• American Stock Exchange – www.nasdaq-amex.com

• Belgian Futures & Options Exchange – www.belfox.be

• Budapest Stock Exchange – www.bse.hu

• Chicago Board of Trade – www.cbot.com

• Chicago Board Options Exchange – www.cboe.com

• Commodities and Futures Exchange (Brazil) – www.bmf.com.br

• Commodity and Monetary Exchange of Malaysia – www.commex.com.my

• Copenhagen Stock Exchange – www.xcse.dk

• Hong Kong Futures Exchange – www.hkfe.com

• Helsinki Exchange – www.hex.fi

• MATIF (France) – www.matif.fr

• MONEP (France) – www.monep.fr

• Hong Kong Futures Exchange – www.hkfe.com

• Italian Derivatives Market (IDEM) – www.borsaitalia.it

• Kansas City Board of Trade (USA) – www.kcbt.com

• Korea Stock Exchange – www.kse.or.kr

• Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) – www.kloffe.com.my

• MICEX (Russia) – www.micex.com

• Montreal Exchange – www.me.org

• New York Board of Trade – www.nyce.com

• New York Mercantile Exchange – www.nymex.com

• New Zealand Futures & Options Exchange Ltd. – www.nzfoe.co.nz

• OM London Exchange – www.omgroup.com

• Oporto Derivatives Exchange (Portugal) – www.bdp.pt

• Osaka Securities Exchange (Japan)– www.ose.or.jp

• Oslo Stock Exchange (Norway) – www.ose.no

• Pacific Exchange (USA)- www.pacificex.com

• Philadelphia Stock Exchange – www.phlx.com

• Rio de Janeiro Stock Exchange – www.bvrj.com.br

• Santiago Stock Exchange – www.bolsantiago.cl

• Sao Paulo Stock Exchange – www.bovespa.com.br

• South African Futures Exchange – www.safex.co.za

• Spanish Financial Futures Market – www.meff.es

• Spanish Options Exchange – www.meffrv.es

• Swedish Futures & Options Market – www.omgroup.com

• Taiwan International Mercantile Exchange – www.taimex.com.tw

• Tokyo Stock Exchange – www.tse.or.jp

• Toronto Futures Exchange – www.tse.com

• Tel-Aviv Stock Exchange – www.tase.co.il

• Toronto Stock Exchange – www.tse.com

• Vienna Stock Exchange – Derivatives Market – www.wbag.at

• Warsaw Stock Exchange (Poland) – www.wse.com.pl

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Popular Stock Index Futures in the World

The NYSE composite was amongst the first stock index futures contract to be listed on May 6, 1982 at the New York Futures Exchange (NYFE) a subsidiary of NYSE. It is broadest of the broad stock indexes available representing every common stock traded on the NYSE. It also has three choices in terms of its contract size depending on the multiplier that best suits an investor. The regular contract launched on May 6, 1982 has a multiplier of $500 times the index. The NYSE Large Composite Index Contract has multiplier at $ 1000 while the NYSE small Composite Index uses a $ 250 multiplier.

NYSE large contract was aimed at institutional users who could reduce their commission costs.

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S&P 500

It is a market-cap index representing 500 leading companies in leading industries in U.S. in large cap blue chip stocks. It is most often used as the benchmark by fund managers for judging their performance in US markets.

S&P 500 futures contract dominates stock index trading in the US. The contract was launched at CME in April 982 when the STP 500 Index was 117 having originally a contract multiples of $ 500. Fifteen years later share rise in index value and consequently contract size led to reduction in contract multiplies to $ 250.

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Value Line

Value line stock Index is a broad based index of approximately 1600 large, mid and small cap stocks traded on the NYSE, NASDAQ- Amex and in Canada. The price movement of each stock is given equal weightage. Value line Index futures were the first index futures in the world, starting on February, 1982 at the KCBT. However it could not capitalise on its early lead. It currently has a contract multiplies of $ 250 which was reduced from $ 500 on June, 1998.

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Dow Jones Industrial Average

It is the oldest and most well known stock measure in the world. Dow Jones & Company started it in May 26, 1896. The next index in US came only 60 years later. The longevity accounts for its continued popularity today as a preferred measure of the market. It is a price-weighted index of 30 of the largest most liquid blue chip US stocks, a number that has held steady since 1928. When the index was first introduced it contained 12 stocks, a figure that was expanded to 20 in 1916. It is traded at Chicago board of trade with a contract multiplies of $ 10.

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RUSSEL 1000

This is sub set of the broader Russel 3000 index which tracks only U. S. companies. NYBOT ( New York Board of Trade ) started futures and options based on Russel 1000 is march 99, offering two contract size – one with $500 multiplier and another with a $1000 multiplier.

Russel 1000 is a market capitalization index, but each ones weighting in the index is based on available market capitalization. The available shares exclude those held by other listed companies, private investor holdings of 10% or more and the company’s ESOP that amount to more than 10% of shares outstanding. Thus it is the stocks with the most tradable outstanding shares at the highest price that will hold the most influence on the index movement.

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S & P Midcap 400

It is a capitalization weighted index of 400 U.S. stocks representing companies whose capitalization is in the middle range of all firms. None of the stocks in S&P 500 can be in S&P Midcap 400 and vice versa. Futures & Options on this index are traded at CME with a Contract multiplier of $500.

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S&P 500 / BARRA Growth Index and Value Index

The above two indexes are constituted by splitting the S&P 500 Index into either growth or value issues. There is no clear definition of growth versus value stock. These are determined solely on the stock’s book- to- price ratio. The two indexes are designed to be equal in market capitalization. As a result, more stocks are in the value index because these companies tend to have lower market capitalization & higher book to price ratios than the growth stocks. Futures & Options on these indices are traded on CME with a contract multiplier of $ 250.

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NASDAQ 100

It comprises of top 100 non-financial stocks, domestic as well as foreign, listed on NASDAQ. It trades on CME with two different contract multipliers - $100 and $20. It is a market cap index with modified capitalization to reduce the overwhelming influence of its top stocks like microsoft.

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PSE Technology Index

It represents the technology sector stocks with 15 industries traded on NYSE, NASDAQ - AMEX. It is a price weighted index. Futures & options on the index are traded on NYBOT with a contract multiplier of $100.

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ISDEX - Internet Stock Index

It consists of publicity traded Internet companies defined as those that exist because of the internet and derive at least 51% of revenues from the internet. It trades on the KCBT wits a contract multiplier of $100. It is calculated as a modified capitalization – index that limits the percent weight of any single stock to 10% of the total market capitalization of all 50 component stocks.

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All Ordinary Share Price index (Australia)

It is the benchmark index in Australia. A market cap index it comprises of the largest stocks listed on the Australia stock exchange. Futures on the index are traded on Sydney Futures Exchange witth a contract multiplier of A $ 25.

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Hang Seng Index

This index is market capitalization weighted index of 33 stocks, representing about 70% of the stock market’s total capitalization. Futures on Hang Seng Index are traded on Hong Kong futures Exchange with a contract multiplier of H. K. $50.

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Nikkei 225 Average

It is Japan’s longest running stock index. It is a price weighted stock index. Future contracts on NIKKEI 225 trade or three exchange CME, OSE (Osaka) and Simex with contract multiples of $5, Yen 1000 & Yen 500 respectively.

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Dow Jones Stoxx 50 and Dow Jones Euro Stoxx 50

To be included in either the Stoxx 50 or the Euro Stoxx 50, a stock must first be part of its respective broader index, the Dow Jones Stoxx or the Dow Jones Euro Stoxx. Futures & cash options are traded on MONEP & Eurex.

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CAC 40

This benchmark Index of France consists of 40 blue chip stocks among France’s largest companies & are weighted in the index by market capitalization. Futures & options on CAC 40 are traded on MONEP & MATIF.

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DAX

It is Germany’s blue chip index of 30 leading stocks. It is calculated on total returns basis and not just on price basis. Income from dividends and rights issues are reinvested in the index portfolio and are reflected in the index value. It is traded on Eurex with a contract multiplier of Euro 25.

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MIB-30

The MIB-30 is a capitalization weighted index of 30 blue chip stocks listed on the Italian exchange. Futures & Options are traded in Italian derivatives market with a contract multiples of Euro 5. The index typically accounts for more than 70% of the markets’ total capitalization.

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IBEX- 35

It tracks Spain’s 35 most liquid stocks. It is capitalization weighted and equals about 80% of the market’s total value. Derivatives on the index are traded on MEFF-RV with contract multiplier of Euro 10.

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OMX

The Swedish Equity Index(OMX) is a capital weighted index of the 30 stocks with the market trading volumes at the Stockholm Stock exchange. They account for about 66% of the total market capitalization. Futures on the index are traded on OM Stockholm and OM London.

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FTSE 100

The FTSE 100 represents the value of the 100 largest companies listed on the LSE. These blue chip stocks typically equal 2/3^rd of the market’s total capitalization. FISE 100 is maintained by FTSE International Ltd, a company formed in 1995 and jointly owned by LSE and the Financial times. It is a market capitalization index. Futures & options on the index are traded on LIFFE with a contract multiplier of Pound 10.

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Top 10 Stock Index Contracts

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